Section 185 shall not apply to a Nidhi Company provided the loan is given to a director or his relative in their capacity as members and such transaction is disclosed in the annual accounts by a note.
If Director or his relative is not a member,Section 185 shall apply.
The maximum limit of provision of loan to members of Nidhi company would be decided as under.
1)member having deposite of less than two crore rupees will get maximum of two lakh rupees. 2)member having deposite of more than two crore rupees but less than twenty crore rupees will get maximum of seven lakh fifty thousand rupees. 3)member having deposite of more than twenty crore rupees but less than fifty crore rupees will get maximum of twenty five lakh rupees. 4)member having deposite of more than fifty crore rupees will get fifty lakh rupees.
Note:-This shall not be considered as professional advise and any one who wants to act on the basis of this shall do so after cross chacking original source.Advisor will not be liable in case of any loss.
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